Burger King answers McDonald’s new restaurant format move | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

When McDonald’s shared its CosMc restaurant concept, the target was clear. The new chain offered a menu built around drinks and snacks.

It was clearly an effort for the chain to answer Starbucks (SBUX) , a chain which does much of its business outside of traditional meal hours. The coffee chain filled a need for morning work breaks, afternoon sips and snacks, and off-hour, in-between meal purchases.

McDonald’s (MCD) has largely failed to take that business with its McCafe concept. That’s a sort of coffeehouse menu located within the fast-food giant. It’s an idea that sort of misses the core concept of a coffeehouse.

Yes, it has espresso-based beverages, frozen, sugary drinks, but most McCafe locations don’t have a coffeehouse vibe. You probably wouldn’t head there to work on your novel, have a date, or argue with your friends about obscure music or indie films.

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CosMc’s comes closer to a coffeehouse feel without relying on coffee. It’s a bold effort to expand the core audience for McDonald’s.

Rival fast-food giant Burger King, a Restaurants Brands International (QSR) company, also has a new restaurant concept. It’s not as bold as what McDonald’s is trying, but it does have a chance to make an even bigger impact than CosMcs.

McCafe has been a mixed success as far as taking audiience from Starbucks.

Image source&colon; McDonald’s

Burger King’s new restaurant brings the sizzle

Burger King’s new restaurant concept seeks to grow the appeal of the core brand. The company calls its redesign, but it’s actually a step beyond the redesigns the chain has been implementing as part of its “Reclaim the Flame” investment program.

“As part of the commitment to modernize restaurants across the U.S., seven months ago, BK revealed its next generation restaurant design – “Sizzle”. The new design is a reimagined format grounded in all aspects of the Guest and Team Member experience and allows for flexibility to evolve the design based on new Guest service modes – with an emphasis on the digital, pick-up and drive-thru experience. Remodel projects as part of the Royal Reset 2.0 investment will feature the new Sizzle design,” the chain shared in a press release.

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Last year, Burger King spent $1 billion to buy its largest U.S. franchisee, Carrols.

“To further accelerate the brand’s turnaround, this was coupled with a plan to remodel approximately 600 of the over 1,000 acquired Burger King restaurants utilizing the operating cash flows of Carrols and bringing the Carrols portfolio to fully modern image by 2028,” the parent company shared.

Burger King expects to sell these locations to smaller, local operators within 3 to 7 years after completion of the acquisition.

Burger King sees strong results for “Sizzle” stores

Restaurant Brands International CEO Josh Kobza believes that a new look for many Burger King locations will drive the chain’s turnaround.

“Modern Image is another key driver of our success. During my trip to North Carolina, I toured two newly opened Carrol Sizzle restaurants, and they are truly stunning. These restaurants showcase the future of Burger King. Beautiful, inviting and well-designed restaurants with modern guests and families in mind,” he said.

Early numbers on the “sizzle” stores have been good.

“With about 80 sizzles in operation today, we’re thrilled with the early results and excited to see how these restaurants will inspire both our franchisees and our guests with a transformed Burger King experience,” he added.

Burger King is doing a mix of traditional remodels and “sizzle” locations.

In 2024, the chain completed 370 remodels, including about 60 Carol’s restaurants, bringing the system to 51% modern image.

“We have about 220 remodels that have been open for more than six months now, and they continue to deliver an average of mid-teens year one sales uplifts, net of control, and even stronger improvements in franchisee profitability,” Kobza added.

Burger King hopes to reach 85% plus Modern Image locations by 2028.

“As we look ahead, Burger King is in a strong position to build on its recent success. With a continued focus on operational excellence, menu innovation, and a modernized restaurant image, we are confident in our ability to drive sustainable long-term growth for the brand and strong returns for our franchisees,” the CEO added.